1. Personal Financial Literacy: Debt Management and Credit Worthiness
Essential Question: How can creating and managing a budget help someone make better financial decisions? How can debt management and credit worthiness impact an individual’s ability to become a responsible consumer and borrower?

2. Terms Deposits Withdrawals Transfers Overdraft fees
Automated Transactions
Bounced Checks
Loan
Debt

3. Personal Debt
Your debt is the money you owe to creditors. People build debt by taking loans for homes, cars, education, starting a new business, etc.
Credit Cards=small loan
Every loan will include interest rate.

4. Personal Debt Cont’d Building debt is not always bad.
Most people will need to take a loan of some kind during their lives.
Banks are more willing to offer loans, or low interest rates, to people with a good credit history/credit score.
You can build a good history/score by paying back your debts on time or early.
PAYING BILLS on time every time

5. Your Responsibilities
Borrow only what you can repay
Read and understand the credit contract (Fine Print)
Pay debts promptly
Notify creditor if you cannot meet payments
Report lost or stolen credit cards promptly
Never give your card number over the phone unless you initiated the call or are certain of the caller’s identity

6. Reading a Credit Card Statement

8. Elements of your Credit Report